You might have heard many occasions that investing for a longer duration is more advantageous than brief-term investments. This is accurate due to the energy of compounding that your lengthy-term investment enjoys. There are quite a few solutions for producing lengthy-term investments.
But, what if you want to invest only for a shorter duration, say just 3 years? What if you just want to park your income for 3 years to meet an vital economic aim? You might like to know about great investment solutions for 3 years in the existing time of uncertainty and the pandemic.
According to Rachit Chawla, CEO and Founder, Finway FSC, investment in genuine estate, equity industry and debt instruments could be advantageous in 3 years.
Talking about investment in genuine estate, Chawla mentioned that house costs have remained stagnant for quite a few years. Hence, they are bound to boost.
“The property prices in India have remained stagnant for many years, so they are bound to increase. Moreover, there are a lot of foreign investments that will get pumped into India. When they are pumped in, the liquidity will increase and consumer demand will increase with it. When demand increases, automatically, the prices increase as well. That will give you good appreciation,” Chawla told FE Online.
After genuine estate, Chawla recommended investment in equities in India could be yet another great alternative as everyone about the globe is bullish for the nation.
“Everybody around the globe is very bullish for India; so all the companies are skilling up their operations also. India is undoubtedly their preferred destination post-Covid. Hence, equities can be a good option, because companies will have more sales and more profitability, and when there is more profitability, earning per share increases. Their share price will automatically increase because fundamentally, they will become stronger,” he mentioned.
Investment in equities comes with particular dangers. Hence, for the danger-averse investors, Chawla recommended a third alternative – Debt.
“Though equity and real estate offer higher returns, they are still a risky option. Hence, it is always better to go for debt as a third option,” he mentioned.